House of Stake AMA with NF Legal

The Spaces primarily focused on governance within the Near ecosystem, specifically discussing the legal and operational structure of the House of Stake Foundation, as explained by Bianca, an associate general counsel at Near Foundation. Discussions highlighted the decision to move away from using a trust legal structure to a foundation in the Cayman Islands, intending to offer more flexibility and operational advantages. The setup includes no beneficiaries or shareholders and involves a subsidiary company to facilitate contracting and payment processes. Key participants also explored the payment challenges and efficiencies within the ecosystem, roles of directors and accountants, proposals and community-driven decisions, transparency, conflict of interest, and structural changes possible by the community.

Near Foundation Governance Spaces

Overview

The discussion primarily revolved around updates from Bianca, the Associate General Counsel at Near Foundation. It focused on legal structures, operations of the House of Stake Foundation, and the interaction between the Near Foundation and the community.

Legal Structures and Operations

Bianca introduced the new setup for the House of Stake, which includes transitioning from a trust structure to a more flexible foundation model based in the Cayman Islands. This setup includes a foundation with no beneficiaries or shareholders and a subsidiary limited company in the British Virgin Islands (BVI).

Structure Details

• Foundation: Registered in the Cayman Islands, designed to offer simplicity and flexibility.
• Subsidiary: A limited company in the BVI owned by the House of Stake Foundation. This subsidiary aims to overcome payment challenges, such as paying contractors in fiat.
• Directorship: Currently comprises one corporate director handled by a third-party service provider not affiliated with Near Foundation.

Financial Management

• Accountants: Engaged Harris and Trotter from the UK to handle accounts, specializing in crypto finances.
• Treasury Management: Suggested creating a sub-Treasury with a quarterly budget approved by the community to handle operational fluctuations.

Governance and Independence

Bianca emphasized community involvement in governance decisions. The community has the freedom to appoint, remove, or change directors, accountants, and other members based on their needs.

Payment and Proposal Processing

• Payment Processing: Moving away from NDC's model by suggesting operational autonomy through sub-wallets or multi-sigs for efficient fund distribution.
• Proposal Flow: Managed through a screening committee, followed by community voting and director approval for fund release.

Challenges and Recommendations

Bianca acknowledged past inefficiencies and proposed budget approval mechanisms to improve fund management. She also addressed the issues of operational delays with NDC payments.

Transparency and Communication

Bianca agreed with questions regarding the importance of transparency between the House of Stake and Near Foundation. Recognizing the need for shared knowledge of initiatives to avoid duplicate funding and foster ecosystem growth.

Community's Role

She highlighted the community's pivotal role in deciding treasury management, including priorities for crypto versus fiat transactions and potential bank account considerations.

Accountability and Governance Queries

Bianca answered questions regarding the setup and potential structural reforms, emphasizing the flexibility of the system to adapt according to community needs. She noted the necessity of a director for legal purposes but left the broader governance structure to community discretion.

Screening Committee and Conflict of Interests

Bianca addressed concerns about the screening committee's potential power over proposal approvals and removals. She suggested community-developed accountability measures and potential intervention from the Security Council for vetos.

Conclusion

Bianca assured that legal documents, including bylaws and a memorandum of association, would soon be shared with the community, detailing governance structures and operations explicitly.

Remarks

The session concluded with potential improvements in transparency and participation, promising more frequent updates and open dialogue channels with Bianca possibly returning for future sessions if needed.